Reducing the image size does seem to reduce the file size.
Most of my pictures sized at 1600 X 1200 are about 335kb. It varies + or - 15kb.
When I resize them to 480 X 360 they run 30kb to 50kb - mostly around the 35kb to 40kb range. I did see one that I cropped and resized that came out 139kb.
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